Recycling: The challenge and the opportunity for a Seed stage VC

My recent post gave rise to a host of questions around the issue of recycling. What does it mean? How do you do it? And what are the implications for venture investors? I attempted to respond in a Tweetstorm, but recycling is a complicated issue that warrants a more thorough discussion. When Limited Partners (LPs) invest in a venture fund, they agree to pay an annual Management Fee on committed capital, usually on a declining scale over a 10 year period. In total, these fees amount to around 20% of an investors’ commitment, which implies that LPs only get to put 80% of their investment dollars to work because of management fees. This makes most LPs pretty unhappy - and it should. LPs generally expect to have 100% of their investment working for them, and best practice is to invest up to around 120% of committed capital when possible. Enter Continue reading "Recycling: The challenge and the opportunity for a Seed stage VC"

Recycling: The challenge and the opportunity for a Seed stage VC

My recent post gave rise to a host of questions around the issue of recycling. What does it mean? How do you do it? And what are the implications for venture investors? I attempted to respond in a Tweetstorm, but recycling is a complicated issue that warrants a more thorough discussion.

When Limited Partners (LPs) invest in a venture fund, they agree to pay an annual Management Fee on committed capital, usually on a declining scale over a 10 year period. In total, these fees amount to around 20% of an investors’ commitment, which implies that LPs only get to put 80% of their investment dollars to work because of management fees. This makes most LPs pretty unhappy - and it should. LPs generally expect to have 100% of their investment working for them, and best practice is to invest up to around 120% of committed capital when possible. Enter Continue reading "Recycling: The challenge and the opportunity for a Seed stage VC"

The TTD Investment and the IA Ventures Model

A Little History IA Ventures began life a little less than seven years ago, just as the world was coming out of the worst economic crisis since the Great Depression. The term “Micro VC” had yet to be coined. “Big Data” was still somewhat mysterious and edgy to those outside Wall Street, Government and Defense. Unicorns were mythical animals that pranced around meadows and were signs of good luck. And there certainly were no discussions of colonizing Mars (!). Upon reflection, 2009 seems almost a generation ago, but I guess that’s what happens when life, fueled by stunning advances in technology, seems to move at warp speed. But with all of these changes, a few basic principles still remain. The greatest venture funds - and firms - in history started small. They started investing very early in a company’s life, owned a lot and continued investing over time. In Continue reading "The TTD Investment and the IA Ventures Model"

The TTD Investment and the IA Ventures Model

A Little History

IA Ventures began life a little less than seven years ago, just as the world was coming out of the worst economic crisis since the Great Depression. The term “Micro VC” had yet to be coined. “Big Data” was still somewhat mysterious and edgy to those outside Wall Street, Government and Defense. Unicorns were mythical animals that pranced around meadows and were signs of good luck. And there certainly were no discussions of colonizing Mars (!). Upon reflection, 2009 seems almost a generation ago, but I guess that’s what happens when life, fueled by stunning advances in technology, seems to move at warp speed. But with all of these changes, a few basic principles still remain. The greatest venture funds - and firms - in history started small. They started investing very early in a company’s life, owned a lot and continued investing over time. In Continue reading "The TTD Investment and the IA Ventures Model"

Blackberry Is The VC Device Of Choice

2007 was only 8 years ago. Back then, you could see VCs everywhere tapping away on the Blackberry keyboards. If you don’t believe me, I have video evidence of it from Fred Wilson, Bijan Sabet, Roger Ehrenberg, and Howard Lindzon.

If you, like me, have been grinding along on email and phone calls all day and need a back to the future type of laugh, I think this will do it for you.

The post Blackberry Is The VC Device Of Choice appeared first on Feld Thoughts.

Welcoming John to IA

Brad, Jesse and I are happy to announce that our friend and colleague, John Hadl, is joining IA Ventures as Venture Partner, effective immediately. We have personally gotten to know John over the past four years due to our shared investment in PlaceIQ: IA Ventures led the Seed round and John, on behalf of USVP, led the Series A. John impressed us from the outset with his deep domain experience, tireless work on behalf of the founders and insightful perspectives in Board discussions. Further, his open and transparent style strongly resonated with us as candor and collaboration are two qualities we value highly. From our relationship formed through PlaceIQ our interactions continued to expand. As John has spent time with us it became clear that our networks, experiences and styles, though different, are highly complementary.

In addition to being a strong cultural fit, John has an impressive track record both Continue reading "Welcoming John to IA"

Welcoming John to IA

Brad, Jesse and I are happy to announce that our friend and colleague, John Hadl, is joining IA Ventures as Venture Partner, effective immediately. We have personally gotten to know John over the past four years due to our shared investment in PlaceIQ: IA Ventures led the Seed round and John, on behalf of USVP, led the Series A. John impressed us from the outset with his deep domain experience, tireless work on behalf of the founders and insightful perspectives in Board discussions. Further, his open and transparent style strongly resonated with us as candor and collaboration are two qualities we value highly. From our relationship formed through PlaceIQ our interactions continued to expand. As John has spent time with us it became clear that our networks, experiences and styles, though different, are highly complementary.

In addition to being a strong cultural fit, John has an impressive track record both as an angel investor and as a VC. John was an angel investor in and an advisor to both AdMob (Google) and Quattro Wireless (Apple), as well as an angel in BlueKai (Oracle) and Whisper, among many others. John also served on the Board of JumpTap until its sale to Millennial Media. His investments while at USVP include GoPro (IPO), Quantifind, Swoop and ZEFR. John has a knack for identifying the right founders to execute against a particular mission, and actively supporting them in their quest. His track record and reputation as a true partner to entrepreneurs is tangible evidence of his skill and his value.

We are excited about John’s contributions to the team and all that we can learn from him. Hopefully he extracts the same value and goodness from us. We look forward to welcoming John into the IA Ventures family and are confident he will help us better serve our most important constituency - our founders.